New study shows several states poised to benefit economically if next U.S. transportation bill invests in public transit

Duke University analysis of U.S. rail manufacturing shows that U.S. rail supply chain includes 247 manufacturing facilities across 35 states

DURHAM, NC –The U.S. rail manufacturing industry stands to undergo considerable growth in the coming years, as Amtrak upgrades its railcars and adds high-speed trains, and as lawmakers consider a transportation bill that calls for significantly greater investments in public transit, including rail, according to a new study by Duke University prepared for the Apollo Alliance. States like New York, Pennsylvania and California, which are home to a combined 80 rail-manufacturing facilities, would reap major benefits from such a bill.

“Our research found that while there is already a healthy chain of U.S. manufacturing locations that produce components and systems for rail cars, the sector still has plenty of room to grow if the next federal transportation bill prioritizes public transit and rail investments,” said Marcy Lowe, a senior research analyst at the Duke University Center on Globalization, Governance & Competitiveness (CGGC) and the report’s lead author.

The report, U.S. Manufacture of Rail Vehicles for Intercity Passenger Rail and Urban Transit: A Value Chain Analysis, looks at the manufacture of U.S. rail vehicles in six categories: intercity passenger, high speed, regional, metro, light rail and streetcars. It finds that the U.S. rail supply chain includes at least 247 manufacturing locations in 35 states. The states with the most manufacturing facilities are New York (32 rail manufacturing facilities), Pennsylvania (26), Illinois (23), California (22) and Ohio (13). Although the U.S. rail manufacturing industry is small—the report’s authors estimate its employment at between 10,000 and 14,000 employees—industry analysts expect it to grow due to pent-up demand for intercity and urban rail service.

“These states have a real chance to be at the center of America’s 21st century rail manufacturing industry,” said Phil Angelides, chairman of the Apollo Alliance. “Our nation needs a new transportation policy that invests in expanded public transit and more energy-efficient transportation, including rail. Done right, these investments could mean a windfall of rail manufacturing jobs across the country.“

Another study released today, by Transportation for America and the Economic Policy Institute, finds that a $500 billion transportation bill that invests heavily in public transit will create 7.2 million jobs across the economy, including 761,321 manufacturing jobs, of which 168,024 jobs would be located in the rail manufacturing sector. To read the full report, visit www.t4america.org.

The Duke report’s authors conclude that growing the U.S. rail manufacturing industry will require committing much larger and more consistent U.S. investments to intercity passenger and urban transit rail. The report also recommends that Buy America provisions be improved through additional accountability mechanisms and the closing of loopholes. Finally, it recommends that policymakers and manufacturers implement measures to capture higher-value activities in the supply chain, such as design and engineering, for the U.S. market. Currently those activities are mostly performed abroad.

The full report is available at apolloalliance.org and at cggc.duke.edu.

CONTACT: Sam Haswell: (415) 371-1700 x201

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The Apollo Alliance is a coalition of unlikely and diverse interests – including labor, business, environmental, and community leaders – advancing a bold vision for the next American economy centered on clean energy and good jobs.